Forex Analysis & Reviews

We present to you the daily updated section of market analysis prepared by professional analysts of InstaForex Company. Each of the specialists represented in this section, carries out analytical reviews in accordance with his/her vision of the current situation on foreign exchange and other markets. However, the outlooks below are only recommendations and not instructions to any actions; they contain analysis of the current situation on the currency market. In some cases the analysts' opinions to changes in the current market situation can differ, in this way, we recommend you to follow the publications of only one analyst, who in your view most clearly and correctly evaluates the situation on the international Forex market.

Email Subscription

Do you want to receive Forex analytics newsletter to your email?
Subscribe online and receive the daily latest reviews made by professional analysts of InstaForex Company. You can select the analysts and types of the technical and fundamental analysis of Forex market, which you will get to your email every day. Be on top of Forex market events with InstaForex!

Volume spike is in an ultra high volume (buying climax). Be careful when selling gold and watch for potential bullish opportunities. Anyway we need to break out of our trading range to confirm further direction....

Our suggested sell entry around 1.5600 got triggered. It is still trading around entry levels. Early exit should be considered if the current daily candlestick maintains its closure above 1.5600.
Note that fixation below the price zone of 1.5550-1.5500 is mandatory to pursue towards lower bearish targets, initially at 1.5450.
On the other hand, a better SELL entry with a lower risk/reward ratio will probably be offered around the price level of 1.5780 (the backside of the broken uptrend). ...

Daily fixation below 1.2300 opened a way towards the levels of 1.2000 and 1.1940 (the depicted weekly uptrend).
Bullish support was found around these levels. Successive higher lows were established. Bullish pressure was applied against the resistance levels of 1.2450 and 1.2500 (previous tops).
Traders can wait for a bearish pullback towards the recent breakout zone (1.2800-1.2750) for a valid BUY entry (Breakout level = Recent Support)....

Earlier, the level of 1.1100 where the backside of the broken uptrend is located, was being approached. However, significant bearish rejection was expressed around 1.1100.
Currently, a bullish pullback is extending above the level of 1.1000. Further bullish advancement towards the price zone of 1.1100-1.1150 should be expected (backside of the broken uptrend line).
The depicted Double-Top pattern remains valid as long as the market keeps defending their recent supply levels around 1.1000 and 1.1100....

Contradictory signals are coming from consecutive weekly candlesticks. This indicates lack of bearish momentum below 1.5500.
The current weekly candlestick closure above 1.5500 hinders further bearish decline and enhances the bullish side of the market towards at least 1.5770 (61.8% Fibonacci level).
On the other hand, the nearest demand level around 1.5200 will become exposed if GBP/USD bears manage to keep their weekly closure below the level of 1.5500 (low probability)....

USD/JPY is expected to trade with bullish bias. The US dollar index is currently trading at 97.372, while overnight it reached a 1-week high of 97.773 after the U.S. government reported that annualized GDP rose 2.3% in 2Q vs an upwardly revised 0.6% advance in 1Q. USD/JPY is in consolidation after rising to a 7-week high of 124.58 overnight. The pair keeps trading above the key support at 123.80 while intraday indicators (20- and 50-period intraday moving averages and intraday RSI) are mixed. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 123.80 holds as the key support, the bias remains bullish with upside targets at 124.60 and 124.80 in extension. However, a break below the key support would trigger a decline toward 123.50 and 123.30 (the low of July 29)....

USD/CHF is expected to trade with a bearish bias. The pair is trading below its intraday 20- and 50-period intraday MAs. The intraday RSI is below its neutrality level at 50. Nevertheless, a support base has formed around 0.9695, which should limit the downside potential. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 0.9695 is not broken, look for a technical rebound to 0.9740 first. A break below 0.96 would open a downward path toward 0.9545....

NZD/USD Intraday: the key resistance is seen at 0.6660. The pair is trading below its 50-period intraday MA, which acts as resistance. The intraday RSI is mixed around its neutrality level of 50. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. Below 0.6615, look for further downside to 0.65 and even 0.6540 in extension. Only a break above of 0.6615 would turn the outlook to positive with targets at 0.6660 and even 0.6690....

GBP/JPY is expected to trade in a lower range. The pair is reversing down after breaking below its previous support at 193.90, which also capped the pair's bounce yesterday. The declining 50-period intraday MA maintains a bearish bias. The intraday RSI is below 50 and losing its upward momentum. The first downside target is seen at the horizontal support and overlap at 193. A break below this level would open the way towards 192.45.
...

The PPI data published yesterday was better than expected with the main index at the level of 0.3% q/q (1.1%y/y) in the second quarter against 0.2% q/q in the previous one. Nevertheless, the other data were not so good as anticipated with bushiness confidence falling to -15.3 from -2.6 a month before and declining private sector credit reading (0.4% m/m vs. 0.5% m/m). This new set of data might be important for RBA to consider another rate cut at the nearest meeting....

The US dollar index has bounced from the lower channel boundary after the FOMC meeting and has managed to break above the 4-hour Ichimoku cloud giving a bullish signal. Now it has reached important resistance area, and if we see a rejection at the current levels, we should expect a pullback towards channel support again....

Gold price remains in a bearish trend below the Ichimoku cloud and below the downward sloping trendline. Short-term resistance is at $1,104, while short-term support is at $1,077. There are increased chances of a bigger bounce towards $1,130 before the resumption of the downtrend towards $1,000 or $980....

Yesterday's readings of the USA GDP data for the second quarter were slightly worse than anticipated. The number came out at the level of 2.3% q/q lower than analysts' forecast of 2.6% q/q. However, the GDP was higher than 0.6% q/q in the previous quarter. ...

The count has been little changed due to expanding corrective cycle in wave c green of wave (c) blue. The outlook is still mid-bearish as the downward wave progression hasn't been completed yet and if the intraday support at the level of 135.53 is violated, next supports are expected at the levels of 135.11 and 134.77.
...

The three wave progression to the upside from the wave 2 black bottom at the level of 1.2859 is still developing. Currently, the intraday resistance at the level of 1.3045 is the main obstacle for the market and if it gets violated, the recent high at the level of 1.3106 will be tested. In case of reaching any new highs, the next weekly resistance is seen at the level of 1.3135.
...